Twitter Reports $502M in Revenue, $137M Loss
Twitter announced their quarterly earnings today and they're...okay.
While the company reported $502 million in revenue, which is up 61% over last year. This is great in that it means that more people are engaging with Twitter and that advertisers are paying more to get noticed on the service. Great, they're growing!
This comes at a cost, however. They reported a loss of $137 million. So basically, they spent $639 million and only earned back $0.78 for each dollar spent. This would be okay if they were a startup rushing to build an audience and get acquired, but Twitter is a public company and they need to start earning a profit if they want to reamin a company for years to come.
Of course Twitter is young and they have some time to figure this out. But if it was my company, I would be worried that I just posted a 22% loss.
Then again, I'm not a business expert and Twitter shares are currently up almost 6% in after hours trading. So there's that.